Did Trump Just Kill The OPEC Deal?

As has been widely discussed in the aftermath of President Trump’s decision to withdraw from the Iran nuclear deal, the return of sanctions on Iran could disrupt oil shipments, with estimates ranging from essentially nothing to as much as 1 million barrels per day of Iranian supply going offline. But the decision also could put an end to the OPEC agreement. Saudi Arabia could be the biggest beneficiary of Trump’s decision, not just because from a geopolitical perspective (Saudi Arabia has long wanted the U.S. to confront Iran), but because any decline in Iranian supply will push up prices, dealing a financial windfall to Riyadh without any sacrifice. Indeed, Saudi Arabia has wanted higher oil prices for some time, with rumors that it was targeting $80 per barrel, or even $100 per barrel . Saudi Arabia needs higher oil prices to fill budget gaps , and it also wants […]